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A-Level Economics · Indirect tax diagram question

Which area is the DEADWEIGHT WELFARE LOSS from the tax?

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The diagram

The answer

The triangle E G F. Surplus shaved off with no gain to anyone — the trades between Q=3 and Q=5 that no longer happen. The triangle EGF sits on the units no longer traded (3→5) and POINTS AT the old equilibrium G: lost surplus nobody gets. We're never getting that back.

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This is one of 9 questions on the indirect tax diagram — every corner lettered, every wrong answer diagnosed.

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